Note 2. Going Concern and Management’s Plan

The accompanying unaudited consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date these unaudited consolidated financial statements are available. At November 30, 2025, the Company has an accumulated deficit of $30,796,176 and net loss for six months ended of $3,163,117. During fiscal year 2026, the Company lost a major customer. Historical sales to this customer, on an annual basis, were approximately $30 million or 55% of total revenue. The Customer was lost during the second quarter and total sales to this customer were approximately $12 million as of November 30, 2025. The termination of this relationship may negatively impact the Company's financial condition and operating results. The Company continues to assess its customer concentration risk and is implementing strategic initiatives to broaden its customer base. In response, management plans to continue its efforts to expand in the present market area and increase sales to its existing customers and seek new customer opportunities. Management also intends to continue tight control over all expenditures and an increased emphasis on inventory and production management. Specifically, on October 31, 2025, the Company implemented a reduction in force of approximately 50% and has also discontinued use of temporary labor. Management plans to make sales price adjustments in the future as necessary to correspond with current contribution margins. Subsequent to the quarter ended November 30, 2025, the Company's largest lender, International Bank of Commerce (IBC), has granted the Company's request to temporarily convert  the amortizing notes to interest only, due monthly, for a period of twelve months beginning January 29, 2026. Additionally, the maturity dates were extended from July 29, 2027 to July 29, 2030. Management  is also in discussion with this lender regarding renewal or extension of the revolving loan. Management believes these modifications will contribute to stronger cash flow. 

Management believes that the successful execution of its business plan and debt modifications would alleviate the substantial doubt about the Company’s ability to continue as a going concern. However, there can be no assurance that these plans will be successful. Because it is unclear whether the Company will be successful in accomplishing these objectives, there is uncertainty about the Company’s circumstances, which creates substantial doubt about its ability to continue as a going concern for the next twelve months after the date of this report. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.